Energy

Oil industry professionals want NNPC, NUPRC probed over oil blocks, contract awards

Photo caption: NNPC and NUPRC logos

 

Oil industry stakeholders in Nigeria, under the auspices of Oil and Gas Professionals Forum (OGPF) have urged the federal government to launch an independent investigation into oil licensing rounds, alleging that firms linked to allies and cronies of Bayo Ojulari, the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPC Ltd), secured favourable blocks during the exercises.

The oil industry experts insisted that the marginal fields licensing process should be revisited as reports suggested “possible insider influence, uneven application of rules and overlaps in block allocations.”

In a statement signed by its convener, Ayodele Momoh, on Saturday, the OGPF said the probe into the leadership and operations of the NNPC Ltd and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has become necessary in view of the growing transparency lapses and concerns surrounding oil block licensing, contract awards and oil production.

“The process implicated Bayo Ojulari through allegations that allies and cronies secured favourable blocks, allegedly aided by insider knowledge and access associated with senior management influence connected to Ojulari’s personal network, including one of his wives, who is a top official at the NUPRC,” the statement noted.

The group said concerns about regulatory credibility, the integrity of bid rounds and transparency in the management of the country’s oil assets had continued to generate unease among industry stakeholders.

According to Momoh, the renewed agitation reflects deepening unease within the oil and gas industry over the pace of reform and the credibility of key decisions shaping the sector.

He noted that the Nigeria’s oil sector is “facing renewed public scrutiny after allegations of policy underperformance, questionable transactions, and renewed contract controversies surrounding senior leadership at NNPC and the NUPRC.”

The group recalled that Mele Kyari, formerly GCEO of NNPC, was removed from office following claims that the “administration under his watch suffered from non-performance, corruption/self-dealing allegations, and an inability to materially raise production beyond the widely cited benchmark of roughly 1.7 million barrels per day.”

The oil industry experts noted that about one and a half years after Mr Kyari’s successor, Bayo Ojulari, took over, the narrative had not improved as production remained below the same threshold amid concerns around non-performance and alleged ‘shady’ transactions.

According to the group, any process involving national assets must be guided by strict transparency, documented criteria and equal access for all qualified participants.

It noted that similar calls had already been made in other quarters for a review of licensing exercises and a forensic look at the bid-round conduct.

The group added, “Some of the blocks tied to the licensing outcome were reported to overlap with interests already held by people described as being close to the President’s inner circle.

“Therefore, we call for the removal of both Bayo Ojulari from his NNPC leadership role and Eyesan from her position at the NUPRC.

Leadership accountability should extend beyond earlier changes and toward current outcomes, especially to protect licensing integrity, contract award practices, and oil production delivery.”

The professionals insisted that it was in the public interest for the presidency and relevant oversight agencies to examine the issues objectively and ensure that any concerns around procurement, licensing and regulatory oversight are addressed transparently.

“Throughout the growing controversy, Ojulari has reportedly maintained that his actions — across licensing and related decisions — were conducted with the knowledge of the President.

“Public accountability requires more than assertions of political awareness, especially where outcomes appear to advantage particular networks,” the stakeholders asserted.

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